Fixed Income Products refer to financial instruments that provide a fixed and predictable stream of income to investors. These products are popular among investors seeking a stable source of returns. Here are some common types of fixed income products:
- Bonds: Bonds are debt securities issued by governments, municipalities, or corporations to raise capital. Investors who purchase bonds are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.
- Certificates of Deposit (CDs): CDs are time deposits offered by banks with a fixed interest rate and maturity date. They typically offer higher interest rates than regular savings accounts but require the investor to lock in their funds for a specified period.
- Treasury Securities: Issued by the government, treasury securities include Treasury Bills (T-bills), Treasury Notes, and Treasury Bonds. These are considered low-risk investments as they are backed by the government's credit.
- Fixed Annuities: Annuities are insurance contracts that guarantee a fixed stream of income to the annuitant. Fixed annuities provide a predetermined interest rate for a specified period, offering stability to the investor.
